Annual renewal is not the best practices for many types of services. Why not try renewal every 3-5 years. That will require a good assessment of the supplier and see if they are reliable and consistent in performance. By committing stable business volume, you are entitled to ask for discounted prices on multi-year contract due to supplier's continuous efficiency improvement in service provision, hardware cost drop in IT industry, etc.
Even if it's year over year renewal, you shouldn't just accept 2-3% price increase if you continue give the same business to the same company.